USPTO Issues Notice of Proposed Rulemaking on Revised Trademark Filing Fees

Today the USPTO published a Notice of Proposed Rulemaking for Trademark Fee Adjustment that sets or revises certain filing fees before the Trademark Office. This process follows up on the presentation made by the USPTO to the Trademark Public Advisory Committee on September 23, 2019. (Transcripts of the TPAC meeting and comments received in response are available at http://www.uspto.gov/about-us/performance-and-planning/fee-setting-and-adjusting.)

The fee changes proposed during the September 2019 TPAC Meeting at that time can be found at Table of Trademark Fee – Current, Proposed and Unit Cost – or one could review the USPTO’s Table of Trademark Fee Adjustments for a more detailed view of what would change under the earlier proposal. The USPTO Director’s letter to TPAC transmitting the earlier fee proposal can also be found on the USPTO’s Fee Setting and Adjusting page. When these amendments were proposed, the anticipated effective date was August 2020.

The latest NPRM seeking to revise the fees proposes that the earliest that new fees could go into effect would be October 2020, and specifically states that before the Final Rule is issued, “the USPTO will consider the state of the U.S. economy, the operational needs of the agency, and public comments submitted pursuant to this NPRM. The USPTO will make adjustments as necessary to the substance and timing of any final rule based on all of these considerations.” Trademark Fee Adjustment, 85 Fed. Reg. 37040 (proposed June 19, 2020).

Generally, the USPTO proposes to increase the fees for all application filing types – with higher fees assessed for paper filings. (Now that the USPTO mandates electronic filing throughout the application process, one would expect that the increase in paper filing fees would only apply in very limited circumstance and not actually result in a substantial change for most filers.)

Notably, the Proposed Rulemaking provides a multi-layer fee relating to amendments to the goods or services covered by a registration around the time the registrant is required to file its Section 8 (or 71) declaration of continued use of the mark in commerce to maintain the registration. Specifically, if the amendment is filed by a Section 7 amendment prior to the submission of the Section 8 (or 71) declaration, then there would be no filing fee to delete goods or services from the registration. There would also be no additional fee incurred if the registrant were to delete goods or services from its registration when it filed its Section (or 71) declaration at the outset.

However, if the registrant submits a Section 7 amendment request, responds to an Office Action or otherwise voluntarily amends the goods or services after the relevant Section 8 (or 71) declaration was filed, then the fee to make the change would be $250 per class (if filing electronically – if filing on paper, the fee increases to $350 per class). 85 Fed. Reg. 37040 at 37041-37042.

Clearly the Office is trying to persuade registrants to clean up their registrations in the normal course – and not wait until after they’ve signed a declaration that the mark is used in connection with all of the goods, and have thereafter received an audit request seeking proof, before realizing that they no longer actually use the mark in commerce in connection with certain goods or services, and therefore must delete them.  It is this latter circumstance which would incur the sizable filing fee per class to delete goods or services from a registration during maintenance.

Interested parties have until August 3, 2020 to submit comments in response to the Notice.

More details can be found on the Federal Register’s summary page.

USPTO Published New Exam Guide on Mandatory Electronic Filing

On February 7, 2020, the USPTO announced its publication of a new Examination Guide explaining the requirements of mandatory electronic filing and clarifying the specimen requirements that are impacted by the new rules. USPTO Examination Guide 1-20, “Mandatory Electronic Filing and Specimen Requirements,” Feb. 2020 (the “Guide”).

Shortly after releasing this Guide, the Trademark Public Advisory Committee held its quarterly public meeting. (See also the slides presented during the meeting – particularly beginning at Slide 19.) One of the topics for discussion was the impact of the Mandatory Electronic Filing Rule and its looming effective date of February 15, 2020. (See USPTO, “Changes to the Trademark Rules of Practice to Mandate Electronic Filing,” 84 Fed. Reg. 69330-69331 (Dec. 18, 2019)).

Applicant/Owner Email Address

This guide makes a number of significant changes to the way U.S. trademark lawyers typically practice. In particular, in order to obtain a filing date for a new application, all applications must now include an individual email address for each applicant, which cannot be:

  • Outside counsel’s email address;
  • A foreign law firm’s email address;
  • An email address that is never monitored (a “black hole email address”); or
  • An email address to which the applicant, registrant or party does not have access.

Guide at 6. The Guide also provides some specific examples of types of email addresses that would be acceptable, including an email address for the owner specifically to receive communications from the USPTO, provided that this email address is both accessible by the owner and routinely monitored. Id.

Owner Email Address Required to Complete Electronic Forms

Similarly, if a trademark owner needs to submit a post-registration filing, such owner must disclose an individual email address or the filing cannot be completed using the USPTO’s forms. Id. The USPTO confirmed in its response to public comments during the TPAC meeting that even though an individual owner’s email address is required in order to complete any filing after the February 15, 2020 implementation date, the USPTO will continue to only correspond with the attorney of record, if an applicant, registrant or party is represented by counsel. See also Guide at 7. At least, until the registration issues – at which point it will only correspond with the registrant unless a new power of attorney is filed for post-registration matters. (More on this point, below.)

Owner Email Address Will Be Available to the Public, But Not on TSDR Status Page

The Guide explains that while the trademark owner’s email address will not be shown in the TSDR status page, it will continue to be available to any member of the public who views the individual documents filed in connection with a particular mark. Id. at (In other words, if the owner’s email address is submitted in connection with filing a Statement of Use, such email address would not be viewable on the overall status page available at TSDR for that application, but any member of the public can find it by opening the actual Statement of Use, as filed.) Id.

Petitioning to Redact Owner Email Address – Extraordinary Situations

Trademark owners, or their attorneys, can petition to have this email address redacted from documents available in TSDR by filing a petition “in an extraordinary situation.” Id. (citing Trademark Manual of Examining Procedure (TMEP) § 1708). When asked during the TPAC meeting what would constitute an “extraordinary situation,” Acting Commissioner Meryl Hershkowitz responded that she did not have a precise answer, because this process was new, but imagined it might include an instance where an individual applicant did not want her email address available to the public because she wanted to avoid contact from someone who was harassing her.

USPTO To Only Contact Correspondent of Record – Until Registration Issues

Finally, both the Guide and comments made during the TPAC meeting also make it clear that the USPTO plans to contact only the trademark owner about matters relating to their files once registration has issued. Id. at 7 (providing that USPTO will contact trademark owner directly when it files a revocation of a prior power of attorney, the designated attorney is suspended or excluded from practice in trademark matters before the USPTO, or “recognition as the designated representative ends pursuant to Rule 2.17(g).”). Id. Rule § 2.17(g) provides that recognition of representation of an applicant by an attorney ends automatically “when the mark registers, when ownership changes, or when the application is abandoned.” 37 C.F.R. § 2.17(g) (available electronically by browsing under Title 37 at https://www.ecfr.gov/).

Similarly, Chief Judge Rogers confirmed in his remarks during the TPAC meeting today that the USPTO will only communicate with trademark owners (and not their attorneys) regarding cancellation petitions filed against their registrations – unless a post-registration power of attorney has been filed. See also Guide at 7 (“Except during the prosecution of a cancellation petition, the USPTO will not correspond directly with a represented party . . . .”) (emphasis added). As a result, it would not be shocking to see attorneys routinely provide their clients with new post-registration powers of attorney for execution, to allow the attorney to continue to receive communications from the Office in connection with completed matters. After all, if a company hires an attorney to handle its trademark portfolio, why would it want to suddenly deal with direct communications from the Office regarding the administrative details required to maintain that portfolio? (I.e., isn’t that what the company hired the attorney for?)

Potential Risks to Making Owner Email Addresses Publicly Accessible

In addition to the privacy/security risks to individual trademark owners resulting from publishing individual owner email addresses on a publicly accessible database (such as the harassment concern raised above), this accessibility also raises the concern that bad actors will have yet another way of impersonating the USPTO and transmitting fraudulent “invoices” to unsuspecting trademark owners, attempting to extort exhorbitant fees seemingly to “maintain” a registration. These invoices routinely bear the wrong mailing address for the USPTO and the wrong applicable deadlines for maintenance obligations. However, depending on which company employee(s) are charged with monitoring this email box, it is not unforseeable that such employee could simply forward that invoice to the accounting department for payment.

In July 2017, the USPTO held a lengthy public roundtable discussion attempting to educate the public about avoiding being duped by these nefarious solicitations. Webinar, “Fraudulent and Misleading Solicitations to Trademark Owners” (July 26, 2017) (video of presentation is still available); see also prior post “Don’t Assume Post-Registration Invoices for Trademark Fees are Legitimate,” Privacy and IP Law Blog (July 27, 2017). During the TPAC meeting today, the USPTO confirmed that it continues to work with the Department of Justice to prosecute these bad actors.

However, notwithstanding such education and enforcement programs, it goes without saying that even the most sophisticated client – upon receiving what appears to be a valid invoice relating to registered trademarks – could be duped into assuming this were a legitimate communication and acting on it as a matter of routine. Providing a direct email address of the trademark owner to the public just increases the risk that the invoice would be received and processed before the trademark attorneys (whether in house or outside counsel) are ever advised.

Specimen Requirements

The Guide also provides some additional clarification about what kinds of specimens will be accepted once the mandatory electronic filing system goes into effect on February 15, 2020. To some degree, the Guide simply sets forth the revisions made to Rule 2.56 (37 C.F.R. § 2.56) as described in more detail on July 31, 2019. See USPTO, “Changes to Trademark Rules of Practice to Mandate Electronic Filing,” 84 Fed. Reg. 37081-37099 at 37090 (July 31, 2019). However, it also provides some important clarifications that are important to keep in mind while preparing to submit specimens online:

  • Labels and tags supporting an application for registration of a mark used on specific goods must not only show the applicable mark as affixed to the goods but also must show “informational matter that typically appears on a label in use in commerce for those types of goods such as net weight, volume, UPC bar codes, lists of contents or ingredients or other information that is not part of the mark but provides information about the goods.” Guide at 9, 10; see also Slides from USPTO Webinar (Dec. 10, 2019) at 56-60.
  • Any website specimen submitted must include print date and URL where the website appeared. Guide at 9, 10; see also Slides (Dec. 10, 2019) at 65-66.
  • In addition to printer’s proofs being rejected, digital images that show “an artist’s rendering, . . . a computer illustration, . . . or similar mock up of how the mark may be displayed” are similarly unacceptable. In essence, these are merely “depictions” of the mark and fail to show actual use in commerce. Guide at 10.

Additional Resources Regarding Specimens: 

USPTO Announces Appointment of New Commissioner of Trademarks

The USPTO has just announced that the U.S. Secretary of Commerce Wilbur Ross appointed a new Commissioner of Trademarks, David Gooder, who is scheduled to start on March 2, 2020. The prior Commissioner, Mary Boney Denison, retired at the end of 2019, before a successor had been named. (See TPAC Annual Report, 2019 at 3.) As a result, Deputy Commissioner, Meryl Hershkowitz, has been serving in the position of Acting Commissioner since January 1, 2020.

According to the USPTO’s February 5, 2020 press release, Mr. Gooder previously served as Chief Trademark Counsel for Brown-Forman Corporation and previously as Managing Director and Chief Trademark Counsel at Jack Daniel’s Properties. Before that, he practiced “trademark, copyright and entertainment law at Graham & James in Los Angeles and Luce Forward in San Diego.” (See Press Release.)

On Friday, February 7, the USPTO will hold its quarterly Trademark Public Advisory Committee meeting – which currently shows Deputy Commissioner Meryl Hershowitz as providing the operations update for the Trademark Office. We assume that there will be some mention of Mr. Gooder’s appointment and an identification of some of the initiatives that he would be addressing when he assumes his role.

We also note that the Trademark Office recently postponed the implementation of the Mandatory Electronic Filing Rule until February 15, 2020 and previously announced that it would be providing guidance to the Trademark bar about how this rule will affect specific practices, such as providing direct email addresses and phone numbers for trademark owners. (See December 10, 2019 Webinar on the impact of the mandatory electronic filing rule change).

For reference, the USPTO posts notices of changes to its trademark practice rules on its Recent Postings page, but the pertinent ones relating to the Mandatory Electronic Filing Rule and the Mandatory U.S. Counsel Rule are linked below.

MANDATORY ELECTRONIC FILING RULE

MANDATORY US COUNSEL RULE

  • Requirement of U.S. Licensed Attorney for Foreign Trademark Applicants and Registrants 31498-31511 [2019-14087] [Electronic version][PDF] (2Jul2019)
  • Notice of Proposed Rulemaking, Requirement of U.S. Licensed Attorney for Foreign Trademark Applicants and Registrants, 4393–4403 [2019–02154] [TEXT] [PDF] (15Feb2019)

USPTO Delays Effective Date for Mandatory eFiling of All Trademark Filings

Today the US Patent and Trademark Office (USPTO) announced that it was delaying the effective date of the new rule requiring the electronic filing of all trademark documents and the provision of accurate email addresses for purposes of correspondence with the USPTO relating to all applications and registrations. The new effective date will be December 21, 2019.

The USPTO explained that the delay was intended to provide the USPTO with more time to prepare internally for implementation and to allow the public more time to “fully comprehend the nature of, and prepare to comply with, the new requirements before they are effective.” Supplementary Information, Sept. 24, 2019.

For more information about the requirements of the Rule, please note the following:

USPTO Expands Random Audit Program

On July 29, 2019, the USPTO hosted a panel discussion outlining the details of its newly-expanded random audit program, as part of its ongoing efforts to declutter the U.S. federal trademark Register.

Originally launched as a pilot program in 2012, the Random Audit Program was made permanent in November 2017, requiring additional proof of use for goods and services covered by over 4,600 registrations. The USPTO has now announced that it plans to expand the program to audit approximately 5,000 registrations each year and has reemphasized that the U.S. trademark registration system protects only those trademarks and service marks actually in use in U.S. commerce – and can not be used as a reservation of rights system.

What Kinds of Registrations are Subject to Audit? Continue reading